Media Stakeout With Senator Kent Conrad
Press Conference
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SEN. CONRAD: I got a couple of people that requested, so whoever it is that requested -- CBS and Fox -- do they want to go ahead?
Q Senator, what are your concerns about the stimulus package and the tax cuts -- (off mike)?
SEN. CONRAD: I have multiple concerns. First of all, that we use programs that are going to give us the biggest bang for the buck, that are as effective as they can be in terms of actually giving a lift to the economy. And if we look back at the Great Depression, what we see is those things that are marginal incentives -- for example, the jobs credit, $3,000 credit for hiring people -- don't work very well in this economic circumstance because an employer is unlikely to add additional people even if they get a credit if there's not demand for their products. For example, the automobile industry's not going to hire more people, even if they get a jobs credit -- a tax credit, if people aren't buying cars. So we think that the better use of the money is in investment, things that are going to be spent that are going to improve the economic efficiency of our society.
And I'd put at the top of the list energy -- breaking the gridlock on the grid, modernizing the grid; computerizing medical records; the projects to improve roads, bridges, waterways. All of these things not only put people to work and put them to work in America, but they improve the economic efficiency of our society, which makes us more competitive for the future.
Q (Off mike) -- the rebates just are too short term. Is there any way that you could do a combination of short-term/long-term -- (off mike)?
SEN. CONRAD: No. No. One thing we've also got to focus on is it's got to be timely, but it's also got to be temporary because we cannot exacerbate our long-term deficit situation. The CBO said today we're facing a $1.2 trillion deficit this year without any cost of the economic recovery plan. The addition to the debt is even higher -- $1.6 trillion added to the debt before the cost of any economic recovery plan. We could have an increase to the debt this year alone of $2 trillion. And more -- of greater concern is that we see as far as the eye can see additions to the debt of over a trillion dollars a year for the next 10 years.
So that's an unsustainable circumstance. So we got to be very careful that what we do to give lift to the economy now does not exacerbate -- make worse -- our long-term situation.
Q But in this sort of era of bailout fatigue, how do you explain to your constituents back home that you're about to spend 800 billion more dollars?
SEN. CONRAD: Well, it's very hard because people are -- and members are -- I mean, you know, what you've heard today is -- reflects the skepticism of members and the skepticism of the people that we represent. We have been -- this isn't the first bite at the apple. We had the rebate program, and I think -- as I expressed in this meeting, I don't think anybody feels it was very effective. We had the TARP program, which has been mishandled. And now we've got the request for an economic recovery plan, which is obviously needed, and overwhelming support today on both sides of the aisle for going forward with an economic recovery plan that is bold, because right now the economy continues to fall. You saw the jobless numbers for December approaching 700,000 people losing their jobs. There's a strong commitment to an economic recovery plan, but it has got to give us the best bang for the buck. It has got to be efficient and effective, and it can't exacerbate our long-term situation.
So, you know, there are a lot of challenges here.
I found this meeting one of the most constructive I've been to. Members were very articulate, very clear. There were consistent messages delivered, and Mr. Summers said message was not only delivered, but received loud and clear.
And you know, this is a work in progress. This is a work in progress. I think they can be very heartened by the fact there is strong support for a bold economic recovery package, and at the same time, people have done a lot of good thinking about how to make that as effective as possible and get us the biggest bang for the buck.
Q You mentioned -- just one more issue -- you mentioned electronic medical records. My understanding of that issue is that -- that at this point it's not a question of not having enough money to buy systems; it's a question of interoperability and getting everybody on the same page. Why wouldn't -- (off mike) -- be an appropriate place? Because it's not like you could give money to hospitals and they would go out and buy the stuff. They're not -- they can't talk to each other yet, can they? So how does that fit?
SEN. CONRAD: Actually, it is both of those things. There is an inability to get them financed, because the overall system is the major beneficiary, but you're asking doctors, clinics and hospitals to make the expenditure when they are already under pressure themselves. So you do have a financial issue. Second, you've got an interoperability question. But the two go very much hand-in-hand.
Q Thank you, Senator.
SEN. CONRAD: Thank you.
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